Selling Stocks? Be Able to Answer These 3 Questions First
Selling a stock can have serious financial ramifications, so it's not a move you want to make lightly. You need to make sure you're clear on your own motivations for selling and the effects the sale will have on the rest of your portfolio before you go ahead with it. Here are a few questions to ask yourself.
People can have different motivations for selling stocks and they're not all equally good. Selling off a poorly performing stock because you'd like to harvest the capital losses to offset some of your capital gains can be a smart, tax-saving move. But selling off a stock because it's had a rough quarter and you're afraid of losing money usually isn't a good idea.
Image source: Getty Images.
Source Fool.com
